Thursday, 27 July 2017

USD/JPY Found resistance at 50% Fibo

Fed’s decision to keep rates unchanged is fading away from markets and we witnessed recovery in US treasury yields and Wall street is indicating elevated mood. Following this and the mixed US data, the USD/JPY pair is pushing higher today. The pair was flirting with the 50% Fibonacci retarcement of the the latest June to July bullish run around 111.60, which is acting as a resistance. 

On the four-hour time frame the price has crossed to above its 20-day SMA that is slightly uptrending, but remains below its 100-day and 200-day SMAs. RSI and stochastic had retreated from extreme oversold conditions. But stochastic is displaying strong bullish momentum while RSI is loosing directional strength. 
Strong support is seen at 61.8% Fibo at 111.00 and in case for breaking it to below, the pair will accelerate its decline towards 110.50 (Monday’s low). 
Looking to the upside, resistance levels are located at 111.60 (today’s high) and 112.40(lats week’s high).





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